AT&T Confirms CapEx Reduction

On January 27, 2015, AT&T released their 2014Q4 results. They beat forecast with a quarterly net loss that was slightly slimmer than Wall Street expected. But perhaps more interestingly, AT&T confirmed that they expect to spend about $18 billion for capital expenditures (capex) in 2015. That forecast corresponds to slightly more than a $3 billion decline from the $21.4 billion spent in 2014.

This is not really new, as AT&T had previously stated that they expected to reduce their capex this year. See http://www.truepulse.com/att-reduce-capex-2015/ But it is still not not great news for hardware manufacturers such as Ciena, Cisco, Fujitsu and Alcatel-Lucent. Not great news for telecom equipment broker TruePulse either.